SOURCE: Pliant Systems Inc.
Pliant Systems to File Voluntary Petition for Chapter 11 Bankruptcy Protection
RESEARCH TRIANGLE PARK, N.C., April 30 /PRNewswire/ --
Pliant Systems Inc. (OTC Bulletin Board: PLNS - news) announced today that it intends to seek Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina in order to facilitate an orderly sale of substantially all of its business and assets to a third party. Although discussions continue with several possible buyers, no agreement has been reached with any buyer. The company expects that in the current environment the proceeds from any sale of assets will not be sufficient to repay the $115 million of convertible notes that will become due May 15, 2001.
In connection with the prospective filing, the company is also restructuring its current operations in order to reduce its monthly operating expenses. Although cost cuts will be made across all departments of the company, the company will preserve all operating functions and intends to continue to provide service to all of its customers without interruption until the sale is closed.
The company believes that Chapter 11 protection is critical to the company's ability to effect an orderly and timely sale of assets and continue to maintain current customer relationships. Inquiries into the sales process can be directed to William Q. Derrough or M. Kent Warner of Jefferies and Company Inc., the company's financial advisor, at 212-284-2550.
About Pliant Systems
Pliant Systems Inc. designs, manufactures and markets integrated multi- service access platforms for the telecommunications industry. The company provides incumbent local exchange carriers and competitive local exchange carriers with integrated access systems capable of delivering voice, data and video services over diverse network topologies. The company's primary product, the Pliant 3000 Integrated Access Platform, is designed to relieve the strain on digital loop carrier systems caused by the Internet explosion, utilizing a distributed architecture to deliver traditional telephony and emerging high-bandwidth services deep into the access network. The company's web site is www.pliantsystems.com.